ADMINISTRATIVE REPORT

Date: November 16, 2000
Author/Local: B. Crowe/7368

RTS No. 1738

CC File No. 1805

Council: November 21, 2000

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Dedicated Fire Protection System - False Creek Crossing

RECOMMENDATION

A. THAT the City award the contract for the Dedicated Fire Protection System - False Creek Crossing to P. Baratta Construction Ltd. for a lump-sum price of $1,613,271 (including GST) and on such other terms and conditions as are satisfactory to the General Manager of Engineering Services and the Director of Legal Services.

B. THAT Council authorize the General Manager of Engineering Services and Director of Legal Services to execute and deliver such contract on behalf of the City.

C. THAT no legal rights or obligations will be created hereby unless and until a contract has been executed and delivered by the City, and then only as between the City and the party named in such contract.

COUNCIL POLICY

On September 28, 2000 Council authorized the General Manager of Engineering Services to negotiate with qualified contractors to perform this contract at a fixed price, with final award of the contract subject to Council approval.

PURPOSE

The General Manager of Engineering Services seeks Council's approval of a contract for the Dedicated Fire Protection System - False Creek Crossing.
BACKGROUND

On September 28, 2000 Council rejected all tenders submitted in response to Invitation to Tender No. 2000-07, on the basis that none of the bids received were compliant. Council directed the General Manager of Engineering Services to negotiate directly with qualified contractors to perform the project at a lump-sum price .

Engineering Services subsequently contacted seven qualified contractors. Each company was invited to meet confidentially with City staff to discuss the terms and conditions under which they might be interested in performing the project. Six companies expressed interest and five submitted proposals.

All five proposals were substantially complete and conformed with the specifications and draft form of agreement we provided.

EVALUATION OF PROPOSALS

The Engineer's estimate for this project was $2.4 million. Two of the proposals were below this estimate, and further negotiations were undertaken with those two companies to discuss their methodologies, proposed personnel, and prices.

P. Baratta Construction Ltd. (Baratta) submitted the lowest price proposal. Taking into consideration costs, experience, equipment and risks associated with a failure to complete the work, we recommend that they be awarded the contract.

This project is structured principally as a lump-sum price contract, however it does contain some cost-sharing where unforeseeable geotechnical conditions significantly impact the contractor's costs to complete. Staff expects this contingent cost to have nominal effect on the final job cost.

CONCLUSION

As directed by Council, Engineering Services has negotiated directly with qualified contractors who could undertake this project. Provided that certain contractual requirements are met by Baratta, staff is of the view that Baratta can provide the best value to the City and has the necessary experience to successfully complete the False Creek Crossing project.

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